Principles of Political Economy: Abridged with Critical, Bibliographical, and Explanatory Notes, and a Sketch of the History of Political Economy — John Stuart Mill — John Shaqi
Principles of Political Economy: Abridged with Critical, Bibliographical, and Explanatory Notes, and a Sketch of the History of Political Economy
John Stuart Mill · en
That the produce of land increases, _cæteris paribus_, in a diminishing
ratio to the increase in the labor employed, is, as we have said (allowing
for occasional and temporary exceptions), the universal law of
agricultural industry. This principle, however, has been denied. So much
so, indeed, that (it is affirmed) the worst land now in cultivation
produces as much food per acre, and even as much to a given amount of
labor, as our ancestors contrived to extract from the richest soils in
England.
The law of diminishing returns is the physical fact upon which the
economic doctrine of rent is based, and requires careful
attention. Carey asserts, instead, that there is a law of
increasing productiveness, since, as men grow in numbers and
intelligence, there arises an ability to get more from the
soil.(132) Some objectors even deny that different grades of land
are cultivated, and that there is no need of taking inferior soils
into cultivation. If this were true, why would not one half an
acre of land be as good as a whole State? Johnston(133) says: “In
a country and among poor settlers ... poor land is a relative
term. Land is called poor which is not suitable to a poor man,
which on mere clearing and burning will not yield good first
crops. Thus that which is poor land for a poor man may prove rich
land to a rich man.”(134) Moreover, as is constantly the case in
our country, it often happens that a railway may bring new lands
into competition with old lands in a given market; of which the
most conspicuous example is the competition of Western
grain-fields with the Eastern farms. In these older districts,
before the competition came, there was a given series of grades in
the cultivated land; after the railway was built there was a
disarrangement of the old series, some going out of cultivation,
some remaining, and some of the new lands entering the list. The
result is a new series of grades better suited to satisfy the
wants of men.